Mandelson ousted as ambassador, then sacked by his own firm within hours

Lord Mandelson was fired as Britain's ambassador to the United States at 10:30 a.m. on Sept. 11, and within about an hour his own advisory firm, Global Counsel, moved to sever ties with him, citing the potential for negative media coverage and concerns among clients about being associated with him.

Global Counsel, a strategy and communications firm founded by Mandelson in 2010 to capitalise on Labour's loss of power, quickly approved a four-page deal to convert Mandelson's stake and terminate his ability to influence the firm. Directors said several clients had expressed concern that they could be tarnished by association and that there was no imminent risk of clients leaving, but continued involvement would heighten media questions.

On the morning of the sacking, Mandelson still held a 21 percent stake in Global Counsel, valued at about £6 million. Those shares were converted to non-voting stock, removing his capacity to affect strategic or operational decisions, according to filings with Companies House.

Global Counsel has six offices worldwide and lists clients including TikTok and Palantir. The firm was founded by Mandelson with long-time associate Benjamin Wegg-Prosser, and has marketed itself as providing strategy and communications services to both governments and multinational clients.

Prime Minister Keir Starmer announced Mandelson's sacking as ambassador to the United States after a day of internal debate within Labour, with ministers and backbenchers pressing for his removal over past links and ongoing media scrutiny. Reports described emails and materials linking Mandelson to Jeffrey Epstein; Mandelson has denied any illegal conduct and has not been charged. The disclosures come as Labour faced internal tensions over elite networks and potential conflicts of interest, complicating its handling of a sensitive diplomatic posting.

Whitehall officials prepared for potential legal justification if Mandelson resisted removal, though the decision was announced as an immediate withdrawal of ambassadorial status. The episode underscores the tension between public office and private sector interests in a time of heightened scrutiny of relationships among politicians, aides, and high-level advisers on the world stage.